Business Bankruptcy: Chapter 11 and Chapter 7

Chapter 11 bankruptcy is considered the business bankruptcy. It's a way of restructuring debt to help companies become profitable. Chapter 11 bankruptcy is usually preferable to Chapter 7 bankruptcy for both the business and for the business's creditors. This is because under Chapter 7 bankruptcy, creditors have a much lower chance of getting their debts re-paid and businesses have no chance of continuing their work.

Under Chapter 11 bankruptcy, a company comes up with a reorganization plan that places their creditors into a variety of different classes with respect to how their debts will be handled. Creditors that receive top priority include state and federal agencies and employees who are owed wages. Secured creditors are placed into another class and unsecured creditors are placed into yet another. Companies work with their creditors during a Chapter 11 bankruptcy to determine reasonable and fair plans for repaying their debts over a period of time.

Speak to a Chicago bankruptcy lawyer today to discuss the future of your company and the best ways to restructure your debt. A bankruptcy attorney can help you work through your situation with the goal of one day coming out on top. Contact Bizar & Doyle, LLC to get help from our attorneys now!